MEXC Under Fire After $3.1 Million Account Freeze Sparks Outrage

MEXC, one of the world’s ten largest cryptocurrency exchanges, has a problem: Customer “The White Whale” is complaining about his frozen account and denies that he violated rules. The case is gaining traction.

Can you still rely on payouts and fair treatment at the cryptocurrency exchange MEXC? When customer “The White Whale” described his negative experiences with MEXC on X midweek, it seemed like a minor issue. But the post quickly went viral, and on Thursday evening, the crypto exchange felt compelled to release an official statement. What happened?

“The White Whale” complains that MEXC has “frozen” $3.1 million

According to his own account, “The White Whale” used MEXC for crypto derivatives until his account was suspended by the exchange. He was accused of using bots for “high-frequency trading,” which MEXC prohibits.

However, “The White Whale” denies this. He claims to have executed all his trades manually and that any parallel transactions were likely due to delays caused by a VPN tunnel.

“The White Whale” made his complete MEXC trading history public and subsequently received support from experts: there is little to no evidence of automated trading by “The White Whale.” $3.1 million is held in the “frozen” account and is to be donated if MEXC finally releases the funds.

Crypto detective ZachXBT sides with “The White Whale”

But the crypto exchange initially sent its board member Cecilia Hsueh to quietly resolve the conflict in a personal conversation with “The White Whale.”

This, however, only made matters worse. When the trader recounted the conversation on X, the disappointed MEXC representative Hsueh also responded—and suddenly even the highly respected crypto detective ZachXBT got involved. On X , ZachXBT mocked MEXC and Hsueh for unleashing bots to influence public opinion—thus damaging the crypto exchange’s credibility.

MEXC seeks arbitration – “The White Whale” speaks of doxxing

The official MEXC statement reiterates the accusation that “The White Whale” violated rules through “automated or abnormal trading.”

They will initiate an independent arbitration process and publish the results. MEXC threatens that anyone who continues to spread misinformation will face legal consequences. “The White Whale” therefore accuses X of doxxing if his real name becomes public and already considers the arbitration process to have been violated.

Conclusion: MEXC scores an own goal with its handling of “The White Whale”

MEXC is now experiencing the so-called “Streisand effect,” which states that attempts to suppress critical information often only provoke more publicity. Prompted by “The White Whale,” customer reports are now piling up online, claiming to have had similar experiences with allegedly unjustified account closures.

The affected trader is already promoting decentralized cryptocurrency exchanges like Hyperliquid to protect himself from intervention by a centralized entity like MEXC. The withheld $3.1 million could prove very costly for MEXC in terms of loss of trust and customer churn.

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(Featured image by Behnam Norouzi via Unsplash)

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